US Tariff Changes: A Potential Hindrance to Indian Export Growth

The US's revised tariff stance could significantly affect Indian exports, particularly in sectors like pharmaceuticals. A senior EXIM Bank official highlights the potential impacts and suggests market diversification, such as exploring Latin America. The government is assessing the anticipated implications of the changes on trade dynamics.

A revised tariff policy in the United States might pose challenges to Indian exports, according to a senior EXIM Bank official. The bank has reportedly informed the government about the potential impacts, following statements by U.S. President Donald Trump on impending tariff implementation from April.

With a substantial portion of India's exports directed to the U.S., the policy shift could severely affect trade volumes, depending on the specific requirements, stated Deepali Agrawal, deputy managing director of the bank. She mentioned the need to monitor how these decisions and subsequent consumer reactions unfold in the U.S.

Agrawal also highlighted challenges like rupee depreciation and emphasized exploring alternative markets such as Latin America, especially for the pharmaceutical sector, which heavily relies on the U.S. She noted that a thorough evaluation of these changes is essential to accurately gauge their impact.

(With inputs from agencies.)